As per the deal, iGate and Apax have agreed to pay INR503.5 ($11.08) a share for a 63% stake in Patni. The price does not include fees for a non-compete clause in the agreement.
iGate may also make an open offer for an additional 20% to Patni’s minority shareholders following the deal, according to reports.
Apax is expected to invest about $500m in iGate for the acquisition and iGate has approached Standard Chartered and Deutsche Bank for loan of another $500m, for the deal.
Patni’s three founding brothers – Narendra Patni, Ashok Patni and Gajendra Patni – are selling their 46% stake, while private equity firm General Atlantic is selling its 17% holding.
Patni is a mid-sized IT services company that is also listed in New York. Its clients include GE, Hitachi and Procter & Gamble Gillette brand.
